MIAMI—AMS Hospitality, comprising The Allen Morris Company and Stormont Hospitality Group, and national commercial real estate investment firm Black Salmon have launched a joint venture with plans to acquire $300 million in hospitality assets across the U.S. within the next 18 months.
The December acquisition of The Pelham Hotel in New Orleans, a 65-key boutique hotel, marks the JV’s first acquisition. It is designated a historic landmark and ideally set adjacent to the French Quarter, within the city’s Central Business District.
The property will undergo a complete, multimillion-dollar renovation of the ground-floor lobby, public areas and guestrooms in order to modernize its design and enhance the guest experience.
The partnership between AMS Hospitality and Black Salmon leverages the key strengths and expertise of both firms across the disciplines of acquisitions, asset management, and capital raising, according to the companies. The JV will seek hotel properties that have undergone a price reduction from pre-pandemic values.
As a national firm, Black Salmon’s investment strategy focuses on acquiring stabilized assets, in addition to value-add opportunities, in high growth markets with an educated workforce, a robust technology industry and strong market fundamentals. The company has amassed a nearly $500-billion portfolio, which includes prime office and senior housing assets and now hospitality.
AMS Hospitality was realized earlier this year, joining The Allen Morris Company, one of the largest, diversified real estate firms in the southeast, and Stormont Hospitality, a highly acclaimed hotel developer and asset manager.
New Orleans-based HRI Properties has been selected to provide property management services for the hotel.
“The capability of this partnership to acquire and transform a hospitality asset is compelling,” said W. Allen Morris, chairman/CEO, The Allen Morris Company. “This initial acquisition of The Pelham is an ideal of example of how we envision leveraging all facets of our varied strengths.”
Jorge Escobar, CEO, Black Salmon, added, “We are delighted to mark Black Salmon’s foray into the hospitality industry with this deal. Through our partnership with AMS, we will further our reach into the hospitality sector and generate new opportunities for our investors.”
“We are truly pleased to have partnered with a group of such consummate professionals across these various disciplines,” concluded Jim Stormont, cofounder, Stormont Hospitality Group, and president, AMS Hospitality. “We look forward to expanding our relationships and our portfolio within this sector while creating landmark assets.”